I welcome this opportunity to speak about the recently published Programme for Prosperity and Fairness. In recent weeks the membership of many of the various social partner organisations, which participated both in the negotiations and conclusion of the agreement, have been engaged in consideration of its detail. Many people have been promoting acceptance while others have voiced a different opinion. It is entirely proper that such a debate occur and it is a healthy exercise for our democracy. It is vitally important that everyone understands the issues from all perspectives and that we are all clearly aware just what is at stake. We have come a long way over the past ten to 15 years and it is unthinkable that we might embark on a path now which could undermine that success.
For many currently in the workforce the memory of the dark days of the mid 1980s is very distant and for many more their experience of working life has been in an environment where we have been achieving spectacular growth and building towards the economic success story that is Ireland today. However, the experience of earlier times shows that when we do not work together, when each group pursues its own narrow self-interest, everybody loses. We must learn from those earlier experiences. We must recognise that social partnership played a crucial role in shaping our recent economic development. It has done so by supporting a competitive evolution of incomes which underpinned the transformation of public finances and delivered low inflation. The consensus approach provided stability and confidence and facilitated high levels of investment and jobs growth. Through its inclusive structure, social partnership has supported an ambitious approach to social policy, especially in tackling the scourge of unemployment.
We are all well aware of the litany of dismal statistics before social partnership took hold in 1987 so I will confine myself to just a few com parisons. In 1987 the national debt/GNP ratio was 125%. In the decade 1977 to 1987 inflation averaged 11.7%. Public finances had reached such a point of deep crises that we came under the scrutiny of the IMF. At the end of 1999, the Government debt-GDP ratio stood at 47%, down from 49% in 1998. Inflation during the partnership years up to November 1999 averaged approximately 3%. Our public finances have reached a level of buoyancy which is unprecedented in our history.
In the area of unemployment the transformation over the period of partnership has been equally as positive. More than half a million more people are in work than in 1987. The total number in employment is almost 1.7 million – the highest level in the history of the State. Since the Government took office the number of people on the live register has fallen by almost 83,000, the unemployment rate has been more than halved and the level of long-term unemployment has also fallen dramatically. According to the most recent quarterly national household survey, 2.1% of the workforce is classified as long-term unemployed, down from 5.6% in April 1997.
This is progress but we are not satisfied and, in the context of the new programme, have set ourselves the target of the effective elimination of long-term unemployment over the period of the agreement. The PPF recognises our achievements and success and, through the comprehensive objectives and actions contained in its various chapters, outlines a prescription to ensure that everyone will share in the benefits of our national success. The programme is rooted in the recent NESC report, Opportunities, Challenges and Capacities for Choice, and is structured to complement and reflect the goals of the recently published national development plan.
The programme has the capacity to transform society. It represents a further major assault on poverty and exclusion. It is important that we consider the totality of the agreement and not particular elements set apart in isolation. The programme consists of an integrated package of pay, tax and social inclusion measures and must be considered in that context. It will deliver substantial increases in incomes. A process of major restructuring of the tax system has already begun. These steps, together with the pay elements in the programme, will generate increases of 25% or more in net take home pay over its lifetime. A national minimum wage will be introduced within weeks. Widening of the tax bands and other reforms will remove substantial numbers of people from the top rate of tax while those on lower incomes, such as those at the new minimum wage level, will gradually be removed from the tax net altogether.
The social inclusion and income adequacy measures envisaged by the programme come within the expenditure commitment of £1.5 billion over the period of the agreement. Some initiatives have already been set in train through the recent budget. Improvements are being implemented in respect of retirement and old age and invalidity pensions, disability allowance, FIS and carers benefit. The programme must be viewed in the context of its broader content. The pay and social inclusion elements are critically important, but many other issues, for example, labour market, health and safety, consumer matters etc. concern the social partners and the programme is comprehensive in reflecting these issues.
I will comment briefly on actions already under way to address some of these issues. As time is limited, I will confine my observations to some of my areas of responsibility. The PPF specifically addresses occupational safety, health and welfare. One of its stated objectives is "to reduce the number of accidents and to underpin the joint responsibility of employers and employees in relation to the prevention of accidents in the workplace and the adoption of a health and safety culture". This objective encapsulates perfectly the message that I and my Government colleagues have advocated over the past three years. The reduction of accident and fatality rates in workplaces will not be brought about by prescriptive State action alone, but needs to be underpinned by ownership and partnership in order to create a truly safety conscious culture in every sector.
I welcome the inclusion of this objective and the actions it identifies to achieve it as not only does it give a very public priority to the issue of workplace health and safety but it also gives a credibility and credence to the actions and activities which both I and the Health and Safety Authority have pursued in recent times. Three of the principal activities include the introduction of measures to tackle health and safety in the high risk construction sector, an exploration of the broader health, safety and welfare issues facing our workforce and the initiation of a full review of the Safety, Health and Welfare at Work Act, 1989.
Two weeks ago I launched a radical new partnership initiative, the construction safety partnership plan, which is designed to tackle safety in the construction sector. Last October I brought both sides of industry together under the auspices of the construction safety partnership agreement and this safety plan is the result of four months of intensive deliberations between all sides in an effort to find ways of bringing about real improvement in safety, health and welfare standards in the construction industry. I particularly welcome the deliberate emphasis throughout the plan on proper safety representation, safety consultation and adequate training for workers and managers. The recommendations concerning these aspects will not only be taken on board by the social partners, but will also be underpinned by legislation.
The construction sector is fundamental to Ireland's social and economic infrastructure and will continue to be so in the context of the NDP, in addition to the building of the national sports stadium and the development of the LUAS light rail system. There is no doubt that the construction sector will continue to boom, but it cannot continue if it costs the lives or health of those who work in the sector. It is ten years since the Safety, Health and Welfare at Work Act was passed and in that time health and safety has become a legitimate business issue. A full picture of the most pertinent health and safety issues is available and this is the ideal position from which to move forward. I have already requested a full review of the Act and I am pleased that the PPF acknowledges the importance and significance of such a review. It will be an indepth review which will draw on all the experiences of the past ten years and will be an opportunity to strengthen and update our health and safety provisions where necessary, as well as laying the foundation for future decades of health and safety practices in Ireland.
I especially welcome the section of the programme directed at enhancing workplace relations through partnership for competitive enterprises. Essentially, this commitment will ensure that we translate our successful national partnership approach to the level of the individual enterprise. In addition, I welcome the opportunity for us to develop and deepen our understanding of the new workplace issues which impact on workers' well-being in both physical and psychological terms. There are major issues outside the physical working environment which must be addressed and I am pleased the programme recognises that.
I turn to insurance costs, which come under the remit of my ministerial colleague, Deputy Treacy. Thanks to previous national agreements, in particular Partnership 2000, this issue was a matter of concern not only because of the cost issue but also because of the safety dimension. The social partners have committed themselves in the programme to improving health and safety standards in the workplace. As part of this commitment, the workplace safety group, which enjoys the support of the HSA and the social partners, is promoting a workplace safety code on safe working and accident prevention.
The McAuley group has completed its work on examining alternative systems for delivery of personal injury compensation and will report shortly to my colleague, the Minister, Deputy Treacy. The group's proposals will be examined by the Government in the light of the agreement in framework 1 of the programme to examine alternatives to the present cumbersome system of personal injury compensation.
On the question of consumer law, the directive on the protection of consumers in respect of distant contracts – Directive 97/7/EC – is due to be transposed into national law this year. It is designed to protect consumers who enter into distant contracts, whether through e-commerce, teleshopping or some other form of distance selling. The directive, which covers goods and most services but not financial services, provides that before a contract is concluded, the consumer must be provided with certain information which is considered essential to enable him or her to make an informed choice, including the identity of the supplier, the main characteristics of the goods or services, the price of the goods or services etc.
The directive also provides that, in general, the consumer will have a right of withdrawal from a distance contract for a specified period. There will be a prohibition on the supply of goods or services to consumers without them being ordered beforehand. The directive will provide consumers who wish to engage in distance contracts with an appropriate legal framework to protect their interests against the background of the growth in cross-Border trade in the Single Market. In the spirit of the PPF, there will be full consultation with interested parties, including consumer and business interests during the transposition process.
I am pleased, with regard to labour market activities, that the agreement recognises the twin issues of labour shortages and social inclusion and that the partners will engage in an appraisal of active labour market programmes to ensure that they reflect the radically different labour market scenario now compared to the problems of high unemployment which plagued us not so long ago.
The emphasis now is on providing an adequate supply of labour, both in terms of numbers and skills, to meet market needs and on providing the individual with the necessary skills and training to improve his or her employability and take advantage of the opportunities in the market.
One of the biggest and most expensive such programmes is community employment and the Government is committed to ensuring that people on this scheme will benefit by progressing to market employment. I hope that, given the buoyant economy, the numbers of people dependent on the scheme will fall automatically. To reflect current circumstances in the labour market, the Government is already committed to reducing the numbers on community employment to 28,000 by 2003.
To continue to provide important services in disadvantaged communities and in doing so to generate employment, a new social economy programme is under way, as set out in the agreement, funded mainly through the savings on CE. The new agreement has also decided that the partners will examine the implications of other essential services such as school caretakers and classroom assistants which are currently provided through the CE scheme.
Forthcoming legislation in the labour law area includes the implementation of the EU directives on part-time and fixed term work. I intend to publish a Bill to implement the part-time work directive by June of this year. The fixed term work directive will be implemented by July 2001. The purpose of the new part-time work legis lation will be to prevent part-time workers from being treated less favourably than full-time workers. It has been apparent for some time that a growing number of people in the workforce are employed in alternative work to the traditional full-time job. Action in this area is very timely, given the increase in new types of flexible working patterns, especially part-time work. The major benefit of part-time work in businesses is that it provides flexibility, allowing the employer to respond to increased competition and the changing demands of customers. It is important, however, that employees in these flexible work situations are not discriminated against and that they must receive treatment which is comparable to that given to permanent full-time employees. Part-time workers tend to be concentrated in sectors requiring low levels of skills with poor pay and prospects, and such employees must be provided with the appropriate protection.
I also intend to introduce a carer's leave Bill which will allow employees to leave their employment temporarily for a period up to 15 months to provide full-time care for older people or people with disabilities in need of full-time care and attention. Such employees will have their employment rights protected during this leave.
The society in which we live has to face demographic changes and the aging of its population with, as a consequence, an increasing number of employees – estimated at up to 5% in Europe – having to take time off work to provide care for parents, relations or friends, and especially the elderly. People in need of such care here traditionally were cared for within the family. However, the decline in family sizes, the increased numbers of people living alone and the increasing participation of women in the labour force all have impacted on the numbers and willingness of family members to provide such care.
The provision of carer's leave, together with the introduction of the new carer's benefit scheme announced by my colleague, the Minister for Social, Community and Family Affairs, Deputy Dermot Ahern, in the budget and included in the Social Welfare Bill, will help to facilitate and support employees who wish to leave the workforce temporarily to care for a parent or relative. It is proposed to commence the legislation simultaneously with the carer's benefit scheme in October 2000.
The Government has faithfully and fully implemented the terms of Partnership 2000. It is fully committed to the principles of social partnership and is already engaged in actions as agreed in the new programme. It is vitally important that everyone recognises that we live in a competitive world. We cannot be complacent. Our continued success depends on our ability to cope with the competitive challenges of the international marketplace and clearly social partnership can give us the edge needed to cope with those challenges.
Four partnership agreements have helped to bring us to prosperity and economic success. This programme is all about deepening and sharing that success. The alternative is a return to the formula of the early 1980s. That approach was abandoned for a very good reason – it did not work. We, together, have devised a process that not only works but has been spectacularly successful. What long-term advantages can be achieved for us all by adopting a different path?
I have heard this programme called everything from a partnership for peace to a programme for happiness. I am convinced that it will provide peace with regard to industrial relations and I am confident it will provide happiness for our workforce throughout the country.
